Friday, May 28, 2010

Silver Stock Report: Why Should You Buy Silver and Gold?

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Why Should You Buy Silver and Gold?

(Or should you hoard coffee, instead?!)

Silver Stock Report

by Kerri Roth.  Edited by Jason Hommel, May 28th, 2010


Well, just imagine it’s a Monday morning, the alarm clock is beeping at you, and you wake up looking toward a new start, the work week ahead.  You vaguely notice that the radio is just static behind the beeping alarm, and not the normal ebb and flow of the local news people and their usual morning banter. That’s strange, you think to yourself.

You head to the kitchen for your usual cup of coffee, and grab the TV remote along the way.  The coffee smells great and you think you may start to wake up as the aroma warmly drifts around you.  You pour your coffee and sit down for a minute to see if you can catch a moment of the TV news before you head to the shower. 

The remote drifts from channel to channel, and something isn’t quite right, few channels are coming in.  Finally you get a major network and the news anchorwoman’s face is looking very strange and uneasy.  It is an eerie feeling seeing a news person so distraught, she is obviously talking without the usual teleprompter help.  The news is no longer scripted!  She's talking about trying to stay on the air; ‘something about the collapse of the dollar’, and not knowing what was going to happen, to all of us, the banks, and the possibility of martial law being declared.

What???

You sit there with your cup of coffee with a very sick feeling coming over you, your heart pounding to the point that you think you may lose consciousness.  Is this real?  It must be, you are awake now! Your mind starts to race -- how much did you have in the bank – the IRA – the 401K – the stocks? And how much do you have on hand at this moment?  How are you going to get gas in the car if the banks are closed and the credit cards don't work?  You start to feel very nauseated, your hands start to shake, and a cold sweat breaks out all over your skin in places you didn't even think you had sweat glands.

The anchorwoman is saying the banks are all closed until the government does something, and yet what can they do, since they caused this mess!
What can you use to buy anything?      
                                                                                                     
How can you use what is of no value anymore, just worthless paper!  What can you barter with? Do you have ANYTHING on hand right now that can be used as a measure of value, to replace what few dollars you may have that are now utterly worthless, to get food to eat, gas in the car -- to stay alive? How will you protect your children? 

WHAT? --  ARE? --  YOU? -- GOING? -- TO? -- DO? !!!

How in the world are you even going to be able to buy any more coffee?!?  You think, is this your last cup?

And then you are exasperated, angry at your foolish thoughts because you know there are things more important than coffee!  But not right now, as you take another sip. 

Your mind starts to race!

It will be that way for millions.  For the vast majority.  For many readers of this report even, who never took action.

Well, hopefully you have prayed, and kept your heart and mind faithfully close to GOD, so that never happens.

But think how that scenario could be totally different for you, when the time comes for everyone else, if you had thought ahead, and put some or most of your dollars into something that you could use to buy, sell, and trade with – something that will hold a value no matter what else happens – something like silver or gold?

When that morning comes, you will likely be able to finish your coffee in style, feeling calm and secure, perhaps trying to avoid feeling a bit smug, and you will rest so much easier when the time comes!  There will be no need to join in the panic that everyone else will be in, when the gas stations begin selling gas for the only workable form of money left, the form of money that has lasted for thousands of years, as they will sell gas for perhaps 20 gallons per troy oz. of silver.

Why would you panic, if you had 5000 oz. of silver tucked away in your home vault?  You do some quick math in your head.  Let's see now, a gallon used to cost up to $5, so 20 gallons once cost $100, so my silver is now worth $100/oz in the old money, and my little stash is now worth a cool $500,000 as measured in “pre crash” dollars that no longer buy anything at all.  Not too bad of a nest egg that you paid only $100,000 to obtain back in mid 2010.

I know most of you are waiting for another day to prepare.  Most people don't buy the flashlights and bottled water until the day before the hurricane arrives, and by then, the stores are sold out! 

Don't wait to call us until the day when you will only get a busy signal, or when the phone lines are all dead.

You know, deep down in your gut, that paper money has no real worth, and supremely overvalued today, and that only silver and gold in your hand is real.
Guess what?  This is another wake up call.  It's me, KERRI at the JH MINT, I can help you with your purchase and delivery of physical silver and gold TODAY!!! 

All you have to do is CALL ME at 530-913-4359 or 530-273-8175, or email at; silver_support3@hotmail.com, and I will take your order and/or help you decide what kind of gold or silver you want. 

You can be the person in this scenario that is able to see this day come and be prepared!  You will feel safe and secure knowing that you have some silver or gold to see things through!

This day could be any day soon – maybe tomorrow.  It's something to truly think about and consider carefully.  It’s one phone call to buy Silver & Gold while you still can.  Minimum order at our great prices is 100 oz.   8-)

=========

I strongly advise you to get real gold and silver, at anywhere near today's prices , while you still can .

Price Board:
http://jhmint.com/cgi-bin/ssrbidask

Our Coin Shops are open 10AM to 5PM Pacific, Monday to Friday
100 oz. silver minimum, USA shipping, wire transfer only! 
Janelle (530) 913 0553 silver_support1@hotmail.com

JH MINT & Coin Shop, Grass Valley, CA 
(530) 273-8175
http://www.jhmint.com/

Rocklin Coin Shop, CA, 15 min north of Sacramento
http://rocklincoinshop.com/

NEW STORES!
Mom's Silver Shop
https://www.momssilvershop.com
3510 Auburn Blvd., #12
Sacramento, CA 95821
916 481-5656
(Mom will ship in lots of more or less than 100 ounces of silver, and overseas, and take credit cards or pay pal.) 

Oakland Silver and Gold
http://www.oaklandsilverandgold.com/
3929 Piedmont Ave.,
Oakland, California 94611
osg2010@gmail.com


Sincerely,

Jason Hommel

In case you miss an email, check the archives:
http://silverstockreport.com/  


 


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Thursday, May 27, 2010

Silver Stock Report: Make your Silver Years Golden

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Make your Silver Years Golden

(The Ancient Secret of the Fountain of Youth!)

Silver Stock Report

by Jason Hommel, May 27th, 2010

Guess how much more Americans spend on Health Care than on precious metals.

Guess.  Really.  Pause and think about it.

Guess now, because I'll tell you in a second.

Too late.

In 2007, the U.S. spent $2.26 trillion on health care, or $7,439 per person.

Source:  http://en.wikipedia.org/wiki/Health_care_in_the_United_States

In 2009, the U.S. mint manufactured and sold 28.7 million oz. of Silver Eagle coins.  Estimated at an average of $15/oz., was worth about $430 million.

In 2009, the U.S. mint manufactured and sold 1.45 million oz. of Gold Eagle coins.
Estimated at an average of $1000/oz., was worth about $1.45 billion.

Source: http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sales&year=2009

Math:  1.45 billion plus 430 million = $1.88 billion. 
More math:  $2,260 billion on health care / $1.88 billion on US gold and silver coin = 1202.

Fact:  Americans spent 1202 times as much money on Health care in 2007, than on newly manufactured US minted gold and silver coins combined in 2009.

If silver and gold become money again, only a small fraction of that silver and gold will be spent on health care, which implies either that health care is simply unaffordable when silver and gold are used as money, or, it implies that silver and gold will go up in value well over 1000 times higher than today.

If I went into business for the sole purpose of making money, then I'm definitely in the wrong industry, as a precious metals dealer. 

But I've definitely made the right investments, buying silver and gold.

A key point here is that health Care spending is choking off potential investment dollars that could be spent on silver, and wealth preservation for the next generation, instead.

If you, my readers, stay healthy, you will live a better lifestyle, which creates a higher standard of living, and you will have that much more money to spend on silver.

In April, I wrote about a problem I had with back pain that flared up.  My pain was gone by the time I wrote, but readers sent me some more tips.  (The benefits of my evangelism).

One 85 year old man told me I had to get a book called: 

The Ancient Secret of the Fountain of Youth.

http://www.amazon.com/Ancient-Secret-Fountain-Youth-Kelder/dp/038549162X

I ordered it, and for the last month, I've been doing the 5 simple and easy exercises that take only about 10 minutes to do.

My back has never felt better, I have more energy, I sleep better, think better, I love them.  My stomach bloat is tightening up, and I've lost about 10 pounds.  I'll probably stick with these for the rest of my life.

Here are people on you tube demonstrating the same exercises.

Fit gentleman on the beach is amazed by his progress in doing the 5 Tibetans.
http://www.youtube.com/watch?v=cZLHIY06mqo

A 73 year old woman demonstrates the 5 Tibetans
http://www.youtube.com/watch?v=HjtslbrFbLY

The Five Tibetans on "Today Extra" TV Show
http://www.youtube.com/watch?v=YVBSkfFJVkU

I know many of my readers are older, and could probably benefit from these more than I am.  Anyone can practice and work up to doing these simple movements.

Apparently, they fix the "chakras" and fix the glands and endocrine system, thyroid, adrenals, etc.   More and more I hear of people who have burned out adrenals or thyoid from stress.  These should help.

These exercises are thousands of years old.  So is the tried and true nature of silver and gold.

Try them.  Go easy at first.  The book says to do them daily, but for people over age 50, to try no more than 3 repetitions a day on your first week, then go to 5 by week two, and 7 by week three, and finally, never any more than 21.

You don't even have to shell out $10 for the book like I did.  The book is great though.  The testimonials range from eliminating gray hair, to eliminating wearing glasses!  That would be nice, but I'm still wearing glasses.

Let me know if they work for you, and how.  Several of my employees notice a positive change already, too.

And if they help lower your heath care bills, all the better.  Just keep me in mind when all that extra cash starts to pile up, and consider spending more on silver for yourself too.


=========

I strongly advise you to get real gold and silver, at anywhere near today's prices , while you still can .

Price Board:
http://jhmint.com/cgi-bin/ssrbidask

Our Coin Shops are open 10AM to 5PM Pacific, Monday to Friday
100 oz. silver minimum, USA shipping, wire transfer only! 
Janelle (530) 913 0553 silver_support1@hotmail.com

JH MINT & Coin Shop, Grass Valley, CA 
(530) 273-8175
http://www.jhmint.com/

Rocklin Coin Shop, CA, 15 min north of Sacramento
http://rocklincoinshop.com/

NEW STORES!
Mom's Silver Shop
https://www.momssilvershop.com
3510 Auburn Blvd., #12
Sacramento, CA 95821
916 481-5656
(Mom will ship in lots of more or less than 100 ounces of silver, and overseas, and take credit cards or pay pal.) 

Oakland Silver and Gold
http://www.oaklandsilverandgold.com/
3929 Piedmont Ave.,
Oakland, California 94611
osg2010@gmail.com


Sincerely,

Jason Hommel

In case you miss an email, check the archives:
http://silverstockreport.com/  


 


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This email was sent to silverstockreport@gmail.com by j@silverstockreport.com.

silverstockreport.com | 13241 Grass Valley Ave | Grass Valley | CA | 95945

Tuesday, May 25, 2010

Silver Stock Report: Stocks vs. Gold

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Stocks vs. Gold

(NYSE Stocks are 100 times overvalued compared to Gold!)

Silver Stock Report

by Jason Hommel, May 25th, 2010

May I explain for a moment why American stocks are so overvalued compared to gold?

Ok, let's start with the basic premise of stocks.

A stock is a fractional ownership of a business, the goal of which is to make money.  If the business can make money, then the stock might be worth something, in theory, if everything goes right. 

If money is defined by gold, then all the businesses in the world can never be worth more than all the gold that exists, because all the businesses in the world can never earn more than that which exists.

All the gold that has ever been mined in all of human history is estimated at about 155,000 tonnes, or about 5 billion ounces of gold, which is less than 1 oz. of gold per person on the planet, as there are about 6.8 billion people, estimated, as of May, 2010.

With gold valued at about $1,200/oz., x 5 billion oz., then all the gold in the world is worth about $6 trillion.

The total value of all the businesses in the world should never be worth more than that.  Period.  Because they cannot all earn more than exists, and that's what exists.

The USA is only one nation on earth.  USA GDP is $14 trillion out of a world GDP of about $60 trillion.
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

The NYSE is only one stock exchange in the USA.  It does not include stocks listed on the Nasdaq, the Amex, the Pink Sheets, or the Over the Counter markets.

The NYSE is the world's largest stock exchange by market capitalization of its listed companies at US $28.5 trillion as of May 2008.

http://en.wikipedia.org/wiki/New_York_Stock_Exchange

Let's assume that the NYSE is a proxy for the American Economy.  Clearly, it is not, as there are many american companies that are not listed on the NYSE, but many companies make money overseas, so let's assume those balance out.

World gold, again, is worth only a paltry $6 trillion, at $1200/oz.

The American Economy (with the NYSE as a proxy for that) is 14/60th part of the world economy.

Thus, the American Economy (NYSE) should be worth no more than 14/60th parts of world gold valued at $6 trillion, which is only $1.4 trillion.

But companies have costs.  So not all of what they earn can flow as profit.  Let's assume the average business has 80% costs, and earn 20% of net revenues, and assum net revenues can acually be as high as "all the gold in the world" that they could earn, which is grossly over optimistic.

Then the American Economy, (NYSE) can only keep, or earn, 20% of the $1.4 trillion, which is $0.28 trillion.

It is said that companies can be worth a multiple of earnings.  Yes, but people also only spend a tiny fraction of savings each year. So that balances out.  So if people only spend 1/10th of world gold each year, and if companies are worth ten times annual earnings, then it balances out, and no math is needed to adjust.

The point is that the NYSE is currently valued at $28 trillion, and should be worth no more than $0.28 trillion.

The point is that American stocks are currently 100 times over valued compared to gold.

Or, conversely, gold is worth 100 times undervalued compared to American stocks.

How did this happen?

Stocks and paper money became an irrational mania, one fed off the other.

These manias can last a long time, in this case, well over a generation, since gold has not been common money anywhere in the world for multiple generations now.

Manias, like frauds, can end very swiftly, literally overnight.

This overvalued stock mania is close to ending, merely for the fact that the baby boomers, who bought into it, are holding stocks that they plan to sell off as they begin to try to live off the proceeds for retirement.   When that entire generation stops earning, and begins selling, who will be buying? 

Stock values must collapse; there is no way that any force anywhere is big enough to keep them propped up.  Gold will go up, as more and more people realize the value of scarce gold.  And silver, even moreso.

All the world's silver mined is only worth $10 billion, most consumed by industry, leaving a scant $2 billion for investment per year.  That's $0.002 Trillion.

The only way that a $28 trillion market, can flow into a $0.002 trillion market, is when the $28 trillion market collapses in value, and the tiny $0.002 trillion market explodes in value. 

Get silver. It's a race against time.  It's a race against all the other baby boomers who bought into a stock mania that is destined to collapse against the harsh reality of historic and trusted values.

While we are considering historic values, consider what life was like over 105 years ago, in San Francisco, in 1905, on Market Street, well before the Federal Reserve was founded in 1913.  Here is a movie that was found, and put on youtube.  The freedom on the streets is amazing; no rules of the road, nobody is hurt, people are dodging cars, driving the wrong way, it's just amazing.

http://www.youtube.com/watch?v=NINOxRxze9k

Life will go on, whether you make the right investment decisions or not.  Ownership will just accrue to those who take wise actions.


=========

I strongly advise you to get real gold and silver, at anywhere near today's prices , while you still can .

Price Board:
http://jhmint.com/cgi-bin/ssrbidask

Our Coin Shops are open 10AM to 5PM Pacific, Monday to Friday
100 oz. silver minimum, USA shipping, wire transfer only! 
Janelle (530) 913 0553 silver_support1@hotmail.com

JH MINT & Coin Shop, Grass Valley, CA 
(530) 273-8175
http://www.jhmint.com/

Rocklin Coin Shop, CA, 15 min north of Sacramento
http://rocklincoinshop.com/

NEW STORES!
Mom's Silver Shop
https://www.momssilvershop.com
3510 Auburn Blvd., #12
Sacramento, CA 95821
916 481-5656
(Mom will ship in lots of more or less than 100 ounces of silver, and overseas, and take credit cards or pay pal.) 

Oakland Silver and Gold
http://www.oaklandsilverandgold.com/
3929 Piedmont Ave.,
Oakland, California 94611
osg2010@gmail.com


Sincerely,

Jason Hommel

In case you miss an email, check the archives:
http://silverstockreport.com/  


 


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silverstockreport.com | 13241 Grass Valley Ave | Grass Valley | CA | 95945

Monday, May 24, 2010

Silver Stock Report: Ten Topics on Silver

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Ten Topics on Silver

(Each in exactly 101 Words!)

Silver Stock Report

by Jason Hommel, May 24th, 2010


Usury.

Lending at interest (usury) is the bane of our era, the highest crime of the ages, condemned by prophets, regulated by God, and ignored by modern man.  God said no usury, unless you loan to other nations, but every seventh year is supposed to be a time of debt forgiveness, thus, it's a plan to teach the nations about God, yet abused instead to enslave people into perpetual bondage.  Usurers want the whole earth, plus 6%!  Lending is not so much a problem as is the interest!  When gold is money, gold grows more valuable over time, so "increase" is built in!

The Big Picture for Silver.

No nation on earth uses silver or gold as a circulating medium of exchange, or common currency.  This trend to not use silver started over 150 years ago, and has come to an end.  If monetary demand for silver changes, it can only go up.  Money is also a store of value, and people are recognizing that more and more.  About 65 years ago, at the end of WWII, the world entered the age of electronics, and the demand for silver in electrical contacts soared tenfold.  This has consumed more than half of all the silver ever mined since the beginning of time.

Supply and Demand for Silver.

The world annual mine output for silver is about 600 million oz., with about another 200 million oz. from recycling, and another 100 million oz. from selling from other sources.  Industrial consumption is about 45%, jewelry consumes about 25%, photography is down to about 15%, leaving about 15% for investor demand.  Investors buy about 100 to 150 million oz. of silver per year, which is barely $2 billion.  Yet the BIS estimates that most all of the worlds' banks have $200 billion in "other precious metal" (or silver) notional value worth of derivatives on the books, indicating that all paper silver is all fraud.  Paper money, unbacked by silver, is fraud, too.

Eternal Properties of Silver.

Silver is rare, dense, fungible, divisible, transportable, non perishable.  These qualities unique to both silver and gold make them both an excellent store of value, unit of account, and medium of exchange.  Silver is the best reflector, and the best electrical conductor in the world, and is a great germ killer, too.  These qualities make silver valuable in tiny quantities to industry.  Gold conducts less well than silver, does not kill germs, is too expensive to consume, and is not a viable alternative.  Neither is paper.  Gold coins smaller than 1/10 of an oz. are not practical, making silver essential as money.

Exchange Traded Silver Funds.

JP Morgan is the custodian of the silver for the silver ETF, SLV.  JP Morgan is also the largest trader of derivatives on the earth, and the holder of the large excessive and concentrated short position in silver on the COMEX, and is being investigated by both the CFTC and the US Justice Department.  The proof is not on me to prove they don't have the silver.  Proof should be on them to prove that they are an honest custodian.  SLV's silver is not able to be audited, and you can't take delivery.  Silver is payment in full, not a promise.

Futures Contracts.

Many people are deceived by greed, thinking they can earn more money if they buy silver on leverage, putting only part of the money down as payment, to enable them to "control" more silver.  But if they don't take delivery of silver, then they are not buying silver, and not controlling any silver, but only get a phantom promise of silver from entities who could not possibly have enough silver to make full delivery.  It's like the fraud of fractional reserve banking, but business as usual today.  I believe it is a moral failure to be deceived by these con games.

Silver Certificates.

Certificates and storage programs are a worse con.  Pay full price to be conned with storage of silver that does not exist!  Canadian banks and Morgan Stanley have both been caught selling non existent silver to clients in the past ten years, and their defense is that it is business as usual; that everybody does it.  Sending brokerage statements showing silver amounts, when no silver exists, should be one count of mail fraud for every customer!  It amazes me that many people do not have the courage and responsibility that is required to guard their silver.  No work equals no results.

Collector Coins.

Many investors are lured into the precious metals market by dealers such as Goldline who is advertised on Glenn Beck.  They mark up "collector" coins anywhere up to 30-100% over spot.  There is no crime in charging a high price, but the scheme is borderline criminal.  By selling older coins as "non-confiscable," they confiscate nearly half of an investor's money right off the top!  By selling those same coins through a leverage program, they don't even have to deliver if the customer does not come up with all the money, and thus, may be selling collector coins that do not exist.

Silver Stocks.

I was guilty of talking up silver stocks, as a way to gain leverage to the rising price of silver.  What the market gave, it took away.  Even my extremely profitable newsletter that showed a look at my portfolio is now in the dustbin, a relic of internet history.  But new internet investors have popped up, claiming great gains as they bought on the dip in 2008.  Too late to chase such gains now.  Stocks are subject to capital gains, nationalization risk, mismanagement risk, debt risk, funding risk, futures market hedging risk, mine collapse risk, strike risk, tax risk.  Why risk it?

Bullion Items

When you buy physical silver, it comes in the form of actual shapes, which we call products.  Popular forms of 99.9% pure silver are 100 oz. bars, 10 oz. bars, 1 oz. rounds, 1 troy oz. silver Eagles.  There is also 90% silver coinage dated from 1964 and earlier.  Occasionally, we get odd weight silver bars, 5 oz. silver bars, 1 oz. silver bars or other odd shaped silver pieces.  And there are also the 1000 oz. COMEX bars, each one varies by weight up to 10%, with the exact weight stamped on the bar.  Ten oz. bars are popular; they used to be the most expensive form, but now, the cheapest.

=========

I strongly advise you to get real gold and silver, at anywhere near today's prices, while you still can .

Price Board:
http://jhmint.com/cgi-bin/ssrbidask

Our Coin Shops are open 10AM to 5PM Pacific, Monday to Friday
100 oz. silver minimum, USA shipping, wire transfer only! 
Janelle (530) 913 0553 silver_support1@hotmail.com

JH MINT & Coin Shop, Grass Valley, CA 
(530) 273-8175
http://www.jhmint.com/

Rocklin Coin Shop, CA, 15 min north of Sacramento
http://rocklincoinshop.com/

NEW STORES!
Mom's Silver Shop
https://www.momssilvershop.com
3510 Auburn Blvd., #12
Sacramento, CA 95821
916 481-5656
(Mom will ship in lots of more or less than 100 ounces of silver, and overseas, and take credit cards or pay pal.) 

Oakland Silver and Gold
http://www.oaklandsilverandgold.com/
3929 Piedmont Ave.,
Oakland, California 94611
osg2010@gmail.com


Sincerely,

Jason Hommel

In case you miss an email, check the archives:
http://silverstockreport.com/  


 


If you found this email useful, please Forward this email to your family and friends.

Safe Unsubscribe
This email was sent to silverstockreport@gmail.com by j@silverstockreport.com.

silverstockreport.com | 13241 Grass Valley Ave | Grass Valley | CA | 95945

Thursday, May 20, 2010

Silver Stock Report: God's Wisdom Creates Abundance

God Bless You!
 
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God's Wisdom Creates Abundance

(Specialization leads to Wealth!)

Silver Stock Report

by Jason Hommel, May 20th, 2010

I get a lot of emails from people who fear an economic collapse that could come after a complete and catastrophic failure of the dollar.  These people own silver and gold, but fear that might not be enough.  They feel they should not be dependent upon trade for survival, but that they should be completely self-sufficient.  In fact, my own wife, and my readings of other "doom and gloomers" inspired me to buy two goats, eight chickens, and my wife started her own garden.  In fact, we even spent $3000 for a goat hut, and another $3000 for a chicken pen, and another several thousand dollars for a fence for the garden to keep the wild deer away.  I figured, even if it didn't work out, I could afford the experiment.  Really.  True story!

What a waste of time and money!  I should have kept the silver, instead!  A year later, we are down to 3 chickens, the rest got out, ran away, or were eaten by wolves or dogs.  Nobody ever bothered to milk the goats, so we sold them.  They just made bleating noises and a stink anyway.  Baby Jude loved them.  He's almost 2.  But that's not enough.  Yes, the chickens produced eggs, and I ate them, but it's not efficient.  We got maybe 4 eggs a day on average?  You can buy eggs at the store much cheaper.  I'd have to collect eggs for about 50 years to pay off the $3000 for the pen.

Besides, we still need to go to the store for everything else.  Today's money may literally come from trees, since it's made of paper, but zip lock bags don't grow on trees!

I think that trying to be totally self sufficient due to a fear of total economic collapse is wrong, and contrary to the lessons I have learned from life experience, and from the Bible.

In Genesis, God speaks of the very first humans who made various things before Noah's flood, and God speaks of gold as good.  That means that trade and specialization were taking place even before Noah, among a world that was entirely wicked!

It has been said that trade leads to specialization.  But perhaps, even more so, specialization creates the excess that is needed to be able to trade it away for other things!

If you plant all of one crop, it creates enhancements in efficiency, creating extra productivity, and forces one to trade the excess, and means that, no, you are not self sufficient, but that you will produce more.

Almost everyone who has ever owned one fruit tree knows that one tree produces way more than enough fruit for one family.  The problem, though, is how to give away the rest, since one tree is almost not enough to take the time to harvest efficiently, nor is the crop very good; it's not enough to bother taking to market, and so, it's often just given away, or wasted on the ground.  

Thus, a whole field of trees of one kind means that you must harvest the crop, and sell it at a market, yes, rely on trade, and that means you are not self sufficient, but that you will get your other things from trading with other people.

Planting a home garden, with many different vegetables, to achieve some sort of self sufficiency, so that you don't need to go to market, would be the opposite kind of thing, and would be contrary to the following scriptural advice from God.

Leviticus 19:19  Ye shall keep my statutes. Thou shalt not let thy cattle gender with a diverse kind: thou shalt not sow thy field with mingled seed: neither shall a garment mingled of linen and woollen come upon thee.

People have suggested that we sell vaults, and guns, along with our gold.

Why?  There are two excellent gun shops in my town, they each also sell vaults, and there is also a locksmith that also sells vaults.  Is there a shortage of vaults to be found?  No.

Why should I take time away from my core business?  Am I an expert on vaults?  No.  Should I be?  I don't see why I should.  I just know that home vaults work.  I recommend you get one.  Then maybe build a cabinet, or even a wall, around it to hide it, for extra security, or maybe get several, just in case.

I don't need to try to do it all.  I should specialize in one thing.  And so, I specialize in silver and gold bullion.  I'm not even an expert in numismatic collector coins.  Metal values only for this dealer.

I think the desire to be totally self sufficient is a fantasy, a wicked fantasy.  We are not supposed to put our hope in wealth, nor to trust in it, but to trust in God.

1 Timothy 6:17-19  Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. Command them to do good, to be rich in good deeds, and to be generous and willing to share (communicate-KJV). In this way they will lay up treasure for themselves as a firm foundation for the coming age, so that they may take hold of the life that is truly life.

If we who are wealthy, should be willing to share, then this means we must, at the very least, share our excess in trade, which enables others to trade, which enables others to specialize, which enables productivity and wealth for everyone.

But what good is wealth that is hoarded, specifically for the express purpose of enabling total self sufficiency?

Luke 12:15-21  Then he said to them, "Watch out! Be on your guard against all kinds of greed; a man's life does not consist in the abundance of his possessions."  And he told them this parable: "The ground of a certain rich man produced a good crop.
He thought to himself, 'What shall I do? I have no place to store my crops.'
"Then he said, 'This is what I'll do. I will tear down my barns and build bigger ones, and there I will store all my grain and my goods.  And I'll say to myself, "You have plenty of good things laid up for many years. Take life easy; eat, drink and be merry."
 "But God said to him, 'You fool! This very night your life will be demanded from you. Then who will get what you have prepared for yourself?'
"This is how it will be with anyone who stores up things for himself but is not rich toward God."

How can we be rich towards God?  The Bible says:

Prov. 19:17 Caring for the poor is lending to the LORD, and you will be well repaid.

The poor in our society today are those who think they are rich because they have an abundance of things, but they are not rich, they are poor, and they need gold!

Revelation 3: To the Church in Laodicea
 14"To the angel of the church in Laodicea write:
      These are the words of the Amen, the faithful and true witness, the ruler of God's creation. 15 I know your deeds, that you are neither cold nor hot. I wish you were either one or the other! 16 So, because you are lukewarm—neither hot nor cold—I am about to spit you out of my mouth. 17 You say, 'I am rich; I have acquired wealth and do not need a thing.' But you do not realize that you are wretched, pitiful, poor, blind and naked. 18 I counsel you to buy from me gold refined in the fire, so you can become rich; and white clothes to wear, so you can cover your shameful nakedness; and salve to put on your eyes, so you can see. 19 Those whom I love I rebuke and discipline. So be earnest, and repent. 20 Here I am! I stand at the door and knock. If anyone hears my voice and opens the door, I will come in and eat with him, and he with me. 21 To him who overcomes, I will give the right to sit with me on my throne, just as I overcame and sat down with my Father on his throne. 22 He who has an ear, let him hear what the Spirit says to the churches."

Many have claimed I'm taking this verse out of context, so that's the full context.

I think this verse is in perfect context, especially with my message today arguing against trying to be totally self sufficient.  Look at what these poor people are saying, "I have acquired wealth and do not need a thing."  That's total self sufficiency, to the point that they are lukewarm towards God.  They are so complacent that they have become spiritually blinded, and don't even know that they are literally poor, perhaps because they are in debt, with a negative net worth, or they only have paper wealth, and no gold at all.

Buying physical gold, it has been claimed by critics, is not the message of the passage, because this is somehow "spiritual gold".  But buying physical gold (or silver) is an action that is the ultimate fulfillment of many spiritual lessons!

Gold ownership is sometimes bashed by immature Christians as somehow being materialism.  Owning gold is not "materialism"; nor is it "consumption".

Gold ownership is evidence of savings, evidence that consumption has been delayed.

Thus gold ownership is evidence of self denial, and self control. 

Self control is one of the ultimate fruits of the Holy Spirit.

Galatians 5:22 But the fruit of the Spirit is love, joy, peace, patience, kindness, goodness, faithfulness, 23 gentleness and self-control. Against such things there is no law. 24 Those who belong to Christ Jesus have crucified the sinful nature with its passions and desires. 25 Since we live by the Spirit, let us keep in step with the Spirit. 26 Let us not become conceited, provoking and envying each other.

Yes, Revelation 3's message to buy physical gold is a spiritual message; it is a spiritual exercise to buy physical gold! 

Buying gold is not enough.  If it were, I would stick only with a message of supply and demand statistics.  But buying gold, for the purpose only of making only yourself rich and comfortable, is not being rich towards God, or other people, and would be a mistake.

The purpose of gold, and silver, once again, is to enable trade.  Trade means you don't need to be self sufficient, but rather you ought to concentrate instead on a specialization that enables you to be most productive, and trust in God's instructions for how to become wealthy, productive, and blessed. 

Due to my understanding of economics, I respect expertise where I find it.

As someone who has been writing about gold and silver for ten years now, I can confidently and happily recommend that you get some, as much as you can, while you still can.


=========

I strongly advise you to get real gold and silver, at anywhere near today's prices, while you still can .

Price Board:
http://jhmint.com/cgi-bin/ssrbidask

Our Coin Shops are open 10AM to 5PM Pacific, Monday to Friday
100 oz. silver minimum, USA shipping, wire transfer only! 
Janelle (530) 913 0553 silver_support1@hotmail.com

JH MINT & Coin Shop, Grass Valley, CA 
(530) 273-8175
http://www.jhmint.com/

Rocklin Coin Shop, CA, 15 min north of Sacramento
http://rocklincoinshop.com/

NEW STORES!
Mom's Silver Shop
https://www.momssilvershop.com
3510 Auburn Blvd., #12
Sacramento, CA 95821
916 481-5656
(Mom will ship in lots of more or less than 100 ounces of silver, and overseas, and take credit cards or pay pal.) 

Oakland Silver and Gold
http://www.oaklandsilverandgold.com/
3929 Piedmont Ave.,
Oakland, California 94611
osg2010@gmail.com


Sincerely,

Jason Hommel

In case you miss an email, check the archives:
http://silverstockreport.com/  


 


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Friday, May 14, 2010

Silver Stock Report: Confiscation

God Bless You!
 
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Confiscation

(The good news about silver, and gold!)

Silver Stock Report

by Jason Hommel, May 14th, 2010


More of my readers ask me about confiscation than any other issue.  I continue to refer people to my article from 2008, but it's time for an update. 

http://silverstockreport.com/2008/confiscation.html 

I stand by what I wrote in the past, but there is more to say.

First of all, gold in the hands of the American public has never been confiscated, never can be, and never will be.

confiscate
1.  To seize (private property) for the public treasury.
2. To seize by or as if by authority. See Synonyms at appropriate.
adj. (knf-skt, kn-fskt)
1. Seized by a government; appropriated.
2. Having lost property through confiscation.

The only gold that has ever been confiscated was gold held by banks for their customers !  Let the buyer beware who owns ETF's,  certificates, bullion accounts, or those holding gold in some storage program; again, beware!

The government has never, and will never, send agents house to house, asking you for your gold, at the threat of gun point.  And even if they did, it would be so easy to evade that kind of inquiry, by merely saying, "My gold, I sold that years ago!"  Think about it, they don't even do that to fight the drug war!!

Furthermore, in a nation of gun owners, government agents would likely terminate the program after about the 100th house they searched, due to the people fighting back.

If the government can't win the war on drugs, against laid-back lazy pot heads, do you think they could win a confiscation war against vigilant, anxious, sober, gun wielding 50-60 year olds, many of whom are decorated veterans of the special forces?

In fact, for those people who know of Bible Prophecy, and even for the atheists and agnostics among us, gold ownership should be the key factor keeping people alive through the coming 7 year tribulation predicted in the Bible in Ezekiel, Daniel, and Revelation.  There will be people who will not ever take the mark of the beast required to buy and sell, and it is those people who will likely have silver and gold who will survive to populate the earth after the tribulation and during the millennium, whether believers, atheists, or agnostics alike! 

Zechariah 14:16-19.  Revelation 13:16-18, Rev 14:9-12, Rev 15:2, Rev 19:20, Rev 20:4-6
See also http://bibleprophesy.org/666mark.htm

Thus silver and gold are the hardest kinds of property to confiscate, because it is the most easily hidden of all assets that exist!  Not even Satan's ultimate government that forces mankind to accept the mark of the beast to buy and sell or be threatened with being beheaded (Revelation 13) will be able to confiscate all the gold and silver among mankind!

Not even drug sniffing dogs can be trained to sniff out gold, because SILVER AND GOLD DO NOT HAVE ANY ODOR! 

But let's think about this a bit.

Why is confiscation even an issue?  Why are gold buyers being trained to ask me about it?  I believe it's because there are numismatic dealers who make more money, and spend more money advertising, make this an issue to be able to sell overpriced gold.  Let me explain more clearly, by way of statistics.

The honest gold bullion market is about a $2 billion market in the USA, with margins of about 1%, on average.  I estimate that, because gold eagle sales are about 1 million oz/year (record production), and assuming that those represent half of gold purchased in the USA (given my experience as a dealer.) 

Thus, honest gold dealers have a gold profit of about $20 million, total, among all gold dealers in the USA, and out of that, will come ad dollars to be spent on things like this email letter that you are reading now to inform you about the truth of the product that we sell.

Why do I go through all that?  Because I read that the numismatic market in gold is about a $10 billion market.  It is not only 5 times as large, but the profits are much larger, too, with margins of about 50 to 100% or more, and thus, the numismatic market earns perhaps from $2 to 5 billion per year, from which they get to spend on advertising.  So, the numismatic dealers might have an ad budget about 100 to 200 times as large as honest gold dealers.  Think about what that means for the education of the average gold buyer.

Thus, I believe that the largest gold dealers in the USA teach lies about confiscation so they can sell you over priced gold that is marked up by over 100% more than it should be!

We sell double eagles, old gold coins around 100 years old, when we get them, for about 10 to 15% over the price of gold. 

No major wholesaler has ever offered us anything significant over the spot price, and we've called around!

Yet those same coins are often sold to the unsuspecting public for up to 100% over the price of gold, to naive clients who are trying to buy "non confiscable" gold.  And thus, by buying the wrong kind of gold, from liars, they end up not only having half of their wealth immediately confiscated, due to their own foolishness and irrational fears, but they end up funding the businesses, and ads, of the liars who continue to spread their lies about non confiscable gold.

This issue really bugs me, as you can tell.  I don't cover this often, because there is the other side of it, of course.  If wealthy buyers wish to buy overpriced gold, or bid high insane prices for rare coins, that's entirely their own business, and there's nothing wrong with that, it's their money, and they can spend it as foolishly as they wish, and there should never be any laws passed to prevent them from doing what they want with their own money. 

Furthermore, why should I expose a $10 billion fraud, when the fraud of selling phantom silver is a $200 billion fraud, and much, much, much worse?  To be rational, I should write about 20 articles on the paper silver fraud for every article I write about overpriced numismatics, and so I do. 

Now, my comments do not exactly address the issue of the 1933 gold recall, or some say, "confiscation", where collector coins were theoretically exempt.  Collector coins were also undefined.  Some say there might be a new law passed where if you pay 15% over spot, then it could be defined as a collector coin, and so, some more honest numismatic dealers will hype up unwanted gold that would otherwise go to the smelter, and sell it at 15% over spot, to satisfy the overly paranoid buyers, rather than sell it at outrageous 100% premiums.

Now, I'm sure I'm going to be slandered by the $10 billion numismatic industry, and forgive me if I don't care to respond for another two years from now. 

But let me put it another way.  New and popular old Eagles represent about 1/2 of the gold we sell.  All other forms of gold are the other half, and so, each of the other forms represent a tiny portion of the other half of gold sales.  This would include bars, Krugerrands, Maples, foreign gold, fractional gold, and old US gold coins. 

Now, if you wanted to be an honest dealer, and saw that some gold was not selling, then you have to realize that it might end up in the smelting pot with your scrap gold and you get less than spot for it due to the refining charge, or, since you recognize that there is next to "no" market for that gold, you could go out and scare the newbies into paying outrageous premiums for that gold.  Or, you can take the middle ground, and be patient, and sell it at reasonable bullion prices, which is what we do.

There's another form of gold, the new "collector" gold that consists of two toned or reverse toned proof strike gold Eagles.  I could mint something similar for the cost of about $600 in new dies, but why bother.  If collectors want to pay outrageous premiums for shiny new two toned gold, let them, but I'm not joining that party.

Likewise, when it's my money, I don't have to buy old comic books at outrageous prices, I don't have to buy old stamps at outrageous prices, I don't have to buy antiques at outrageous prices, and I don't have to buy old or new gold at outrageous prices either.  And I won't.

This works to the advantage of people who think they know the collector coin, rare coin, or numismatic trades, who can find "real bargains" at real bullion shops, where things are not marked up to outrageous prices.

Now, allow me to summarize a few arguments from my last letter on confiscation.

http://silverstockreport.com/2008/confiscation.html  

The real confiscation is inflation.  At a 20% inflation rate, that's worse than the government stealing everything in every 5th home in America, including the home and all the investments.  I'll say it's worse because that kind of inflation creates economic distortions that create bad investment decisions by the remainder of the population.

But think about this!  Government is not likely to confiscate silver and gold, when the government is making and selling silver and gold Eagles coins!

The US government makes 30-40 million silver Eagles per year now, and 1 million gold Eagles.  At $20/oz., that's about $800 million in silver, and $1200 million in gold.

Government is not likely to confiscate silver and gold for the budget when the budget deficit is in the trillions, which is over $1,000,000 million, or a million million.  The value of silver and the gold is simply not even remotely close to being enough to help.  Silver and gold prices would have to be about 100 to 1000 times higher for confiscation to even begin to help plug the current government deficit, let alone pay the entire budget.

The US annual budget is $3 trillion, and all the gold in all the world is barely $6 trillion.  The government would have to confiscate every single gram, ounce, and kilo of gold in the entire world, and it would barely fund the US government for two years, and then the government would be bankrupt all over again!  This is why gold cannot help our government, not at today's low gold prices and not at today's huge government size.

Are "collector" coins not confiscable?  It's a common question.

In reality, everything is confiscable, and nothing is confiscable.  Let me explain.

In the legal sense of today's insane world, the US government has executive orders ready to be put into effect, that in the case of a national emergency, say they can confiscate your home, your car, your investments, and even your body to be put into government work camps.  Do you think that if you had collector coins, that you would be exempt from the work camps when the  time comes?  The only thing standing in the way of that is the second amendment, and the fact that too many of us own guns, and would never go for it.  So, in that sense, even your lawn chair and your bed sheets are confiscable, but not really, since they can try to take them, but won't get very far!

On the other hand, in the Godly legal sense, nothing you own is confiscable, because your things belong to you, and nobody else.  It's absurd beyond reason that some government thugs, if they ever could get their hands on your gold, which they cannot, would go through it piece by piece, sorting out what they can take and cannot take.  Absurd beyond reason. 

Finally, don't trust any sort of third party storage program, as even if they do have the gold, because then all of that will be the first to be confiscated if the government does issue a confiscation order.  And that's the only kind of gold that has ever been confiscated.

One last point.  The issue of confiscation is a big issue to the billionaires of the world.  As individuals, they are easy to prosecute, or raid, or make an example of.  But I know one multi billionaire who has a security force of 80,000 different people, most of whom do not know one another, and can't be traced.  That billionaire is you, my collective readers.  Your gold and silver cannot be confiscated; you are too numerous, too well armed, and too well hidden among a nation of 80 million gun owners!

Another big point that the Bible makes.  Righteous people, by their very presence in the world, end up restraining evil.  That's my reading of 2 Thessalonians Chapter 2. 
http://bibleprophesy.org/2thessalonians2.htm

The mere action of not buying into paper money fraud, and by buying real silver and gold, limits government tyranny via theft of people's money through the printing press.

So, to sum up.  If you don't want the government to steal your wealth, get bullion gold close to the spot price.

Our prices typically range from 5-10% over the spot price, which is much more reasonable than 15-100% premiums over the spot price.

We run no scams.  We run no storage program, we offer no certificates, we offer no leverage programs.  When you call our staff, they will patiently answer your questions about all our bullion products, and help you place an order for real silver and gold that we will ship to you usually the same day that your wire transfer will arrive.
A few promotions:

Ted in Oakland has 200 Indian head 1 oz. rounds at 5% over spot:
http://www.youtube.com/watch?v=hBNRT96dtQ4
oaklandsilverandgold.com

Mom in Sacramento has quite a bit of proof quality 90% bullion she recently bought.
www.momsilvershop.com

We have an abundance of all major silver products at the JH MINT, we have 100 oz. bars, 10 oz. bars, 1 oz. rounds, 1 oz Silver Eagles, and 90% silver US coinage dated from 1964 and earlier.

We have 8 monster boxes in stock, and 5000 oz. of 10 oz. bars, now available.  JH MINT & Coin Shop, Grass Valley, CA (530) 273-8175


=========

I strongly advise you to get real gold and silver, at anywhere near today's prices, while you still can .

Price Board:
http://jhmint.com/cgi-bin/ssrbidask

Our Coin Shops are open 10AM to 5PM Pacific, Monday to Friday
100 oz. silver minimum, USA shipping, wire transfer only! 
Janelle (530) 913 0553 silver_support1@hotmail.com

JH MINT & Coin Shop, Grass Valley, CA 
(530) 273-8175
http://www.jhmint.com/

Rocklin Coin Shop, CA, 15 min north of Sacramento
http://rocklincoinshop.com/

NEW STORES!
Mom's Silver Shop
https://www.momssilvershop.com
3510 Auburn Blvd., #12
Sacramento, CA 95821
916 481-5656
(Mom will ship in lots of more or less than 100 ounces of silver, and overseas, and take credit cards or pay pal.) 

Oakland Silver and Gold
http://www.oaklandsilverandgold.com/
3929 Piedmont Ave.,
Oakland, California 94611
osg2010@gmail.com


Sincerely,

Jason Hommel

In case you miss an email, check the archives:
http://silverstockreport.com/  


 


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Wednesday, May 12, 2010

Silver Stock Report: Our Silver and Gold is Too Cheap

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Our Silver and Gold is Too Cheap

(And it's a better product, on better terms)

Silver Stock Report

by Jason Hommel, May 11th, 2010



We have opened a new precious metals silver and gold store in Oakland, California.  Monday, yesterday, was the opening day. 

Oakland Silver and Gold
http://www.oaklandsilverandgold.com/
3929 Piedmont Ave.,
Oakland, California 94611
osg2010@gmail.com

See the silver and gold on display in a 45 second video.
http://www.youtube.com/watch?v=gg8U1dyvScU



We are selling gold and silver at prices that are way, way, way too cheap, compared to the bullion ETFs.

Our premiums over spot are about 6-9%, and one ETF is at 12% over spot, and another is at 17% over spot!

The entire point of a bullion ETF is to offer 1000 oz. silver bars in an easy to purchase way, such as buying stock, which should be cheaper than typical silver products, since ETF silver is in the form of bulky and unwanted 1000 oz. bars that individual investors don't like to take delivery of, and the ownership is fractionalized, rather than taking the time, engery, and cost to turn that bullion into real 1 oz. rounds. 

Yet, two of the most honest ETFs have prices for the underlying bullion at higher than our prices for bullion that we can ship to you!

We, at JH MINT (www.jhmint.com) offer gold bullion as cheap as 5.9% over spot, and silver as cheap as 7% over spot.

Yet bullion in these two ETFs cost from 12.4% to 17.4% over spot!!!

Quote, from Bill Murphy, at www.lemetropolecafe.com:

"The CEF bullion vehicle closed at a premium to NAV of 12.4% and its peer PHYS at a remarkable premium of 17.417%. This is the highest since before CEF’s last offering in early November and probably the highest ever for PHYS which only started trading in late February."

February was a record month for sales at the JH MINT, and we hit a new record in April.  And the week broke a new record for us, too.

This price anamoly may not last long.  Given the odd pricing structure, we should sell out very soon.  I'd also expect our wholesale suppliers to being selling out, and product will be harder to come by, and/or choices will be limited.

========

It may be of interest to you that I have been courting a billionaire who has a net worth that exceeds $10 billion.  I believe it is actually more like $20 billion.  I've been writing to him about silver for quite a few years now, and I finally got his permission to tell you about him.  I've been telling him for years how tiny the silver market is, that a mere $1 billion invested into real silver would simply dwarf the entire market, and move prices up substantially, and could cause silver to sell out worldwide.

I continue to answer his many questions, and sometimes I grow a bit impatient with him.  I'm trying to mature, and be more cordial with my emails.

Here's a letter he sent me last week.

=====

Maybe you can help me get more clear on one issue in silver investing which is preventing me from taking a larger position.
 
An issue I would like clarity on is the supply of silver inventories.
 
500M to 1B ounces is commonly given for above ground inventories.
 
However, roughly 150M oz/year of silver jewelry and 50M to 75M oz/yr of silverware have been sold into the market place every year for the past 20 to 40 years.   Most of the ounces from those two sources exist today above ground.  Most of those ounces could easily be shipped to refiners, melted, and turned into silver bullion.  (Most of it is not silver plated).  It comes out to over 8B ounces over the last 40 years just laying around above ground.
 
Also, the huge amount of ounces from all the pre-1965 silver coinage exists today and could be considered above ground inventory.
 
Given the huge supply from these three sources being out there in the world, what are the main reasons the Silver Institute, CPM Group and others do not include these massive amounts of silver ounces in their "above ground silver ounces" numbers?
 
The argument of "only silver ounces which are considered .999%  are counted because those are the only ones industrial users can use" seems like a very weak argument because refiners can turn sterling silver, silver jewelry, and real silverware into bullion very quickly if there was a need to do that.   
 
I know what the demand for silver is and how the demand for silver is going up as new applications for silver increase every year; however, price is determined by both demand and supply.   As a silver investor, I believe I should know what the supply of above ground silver really is in order to make a sound decision on silver price potential.
 
Right now, I feel like I only have about half the necessary information (the demand side) to make a clear investment decision on silver.
 
Of course, I want to take advantage of investing in silver if there is only 500M to 1B ounces above ground a year and silver would realistically run out by 2020 as the USGS says.  But what about the other 8B plus ounces out there above ground already and the 200M oz a year going forward which will become above ground inventory ounces as well which can easily be melted and turned into bullion for industrial use. 
 
Yes, I could see silver price going over $200 oz or to the price of gold; however, the supply side issues described above require more light shown on them for a fundamental investor to make a sound decision.
 
What are the choices to go over this with you?  Or are the issues very easily explainable?
Are there any links which discuss this important part of the fundamentals for owning silver?  So far, I have not seen only one to three vague articles on it and that is it.
 
Thank you.

=====

I replied:

These are very good questions, and answers are a bit complex.  This may be a good subject for my next newsletter, as you are not the only one asking.

Let me see what I can do for you briefly, and please respond if this answer is acceptable.

First of all, you will never "know" for certain the inventory that exists when it is distributed among millions and billions of people.

Second, it is not "inventory" in any sense of the word, given that this belongs to the millions and billions of people that hold it, and that silver does not belong to JP Morgan who has the short position!

Third, the people who buy silver in jewelry and flatware forms pay a hefty multiple for that silver, like 3 to 10 times over the price of silver.

Fourth, when that form of silver is sold, the people get about 40-60% of the spot price of silver, which is a significant discount to spot, because of the high costs of refining silver.

Fifth, when the silver price rose in 1980, a lot of that kind of silver was melted down, and most of the nations refineries were backed up by about 6 months, so it is not so easily and quickly refined.

Sixth, recycling is a part of current supply/demand stats in silver counted by the CPM Group, which is up to about 200 million oz. per year, more than you counted as going into those forms of silver.  Some recycling consists of sterling coins that nobody buys, or old generic 1 oz. rounds that are beaten up, irregular in shape, or odd weight bars or large novelty coins that are not easily commoditized for inventors.

To expand on points 3-4 for a bit.  If a person pays $25 for a silver ring that contains 1/5th of an oz. of silver in it, they are literally buying silver at $125/oz.  That silver cannot be sold for profit until AFTER silver hits over about $200/oz., due to refining and middlemen costs.

Therefore, silver jewelry and tableware is not considered a form of silver that can stop this rally, unless gains of greater than 10 fold return happen. 

When silver was at $5/oz., some people were predicting that silver scrap would flood the market to lower the price if silver went above $7/oz.  Clearly, that never happened, and thus, it can't realistically be said to be a prediction, but rather a futile attempt to talk down the silver market and to scare away potential investors.

I hope that most directly answers the bulk of your questions.  If not please elaborate on where I should elaborate further.

=====

In case you are wondering who the billionaire is, let me tell you, by way of getting to the statistics:

I share these statistics regularly, such as in my last email.  One man highlighted the following secions:

People continue to ask, "Which is better, silver, or gold?"
I tell people, we like silver best, because it's a much smaller market.
World annual silver mining is about $10 billion, but world annual gold mining is about $80 billion.
But most of the silver market is consumed by industry, as silver is used in all sorts of electrical contacts and devices.  In fact, industry consumes more silver than world annual mine supply, and the gap is being met by recycling.
So the amount of silver left over for investors is shockingly small, perhaps only $2 billion.
The silver story is surprisingly simple.  The entire world once used silver as money, but today, no nation on earth has silver circulating as currency.  This reduced monetary demand has created a very low price.
But silver remains a better store of wealth than ever, due to the increased scarcity, and the growing awareness of silver ownership as a way to make money.
Money is more than a currency or medium of exchange, it's also a store of value.  As demand for silver, as a store of value, increases, so will the price, and this demand will continue as a positive feedback loop that will eventually destroy paper money.
But the real shocking fact of the silver market is that 99% of silver investors are getting scammed by paper silver, that is basically all fraud.
The proof of this is the BIS report, from the Bank of International Settlements, here:
http://www.bis.org/statistics/otcder/dt21c22a.pdf
The proof is in the numbers.  The BIS keeps track of the derivatives of the banks worldwide.  It shows that the notional value of "other precious metals" over the counter derivatives, which are mostly all silver, increased from $100 billion to over $200 billion in six months.
When the entire annual physical silver investment market is only $2 billion, and when the paper silver investment market increased by $100 billion in six months, there is only one way that can happen.  The silver investment must be all fraud.

=====

So, getting back to the identify of our billionaire friend.  Total wealth in the USA has been estimated as exceeding $70 trillion.  I'll go with $40 trillion, as I know that is "household" wealth, that exceeds that.  If you divide that by 300 million, the population of the usa, then wealth averages out to $40,000,000 million / 300 million = $133,333 per person in assets.  People who read investment newsletters have a significantly higher net worth, on average, but let's go with that.

I have 80,000 emails on my email list.  80,000 x $133,333 = $10.6 billion.  I would suppose that my readers are significantly wealthier than average, as that's what the statistics also say.

Thus, the billionaire is you, my dear reader.  Collectively, it's you.

Many of you have asked me, "Jason, why don't you start a fund to help pool people's investment dollars together to buy siler?"

Answer?  Because such funds already exist.  Because such funds are not as safe as if 10,000 different people buy silver.  Also, today individual silver is also cheaper than fund silver!

Many people say they won't act to buy silver until after a billionaire buys it.  You ARE that billionaire.  And just as there is not enough silver for a multi billionaire, there is NOT NEARLY ENOUGH silver for all of you.

That's why I say, get some while you still can.

WE ARE ONLY SELLING SILVER, BECAUSE WE CAN STILL GET SOME, TOO!


=========

I strongly advise you to get real gold and silver, at anywhere near today's prices, while you still can .

Price Board:
http://jhmint.com/cgi-bin/ssrbidask

Our Coin Shops are open 10AM to 5PM Pacific, Monday to Friday
100 oz. silver minimum, USA shipping, wire transfer only! 
Janelle (530) 913 0553 silver_support1@hotmail.com

JH MINT & Coin Shop, Grass Valley, CA 
(530) 273-8175
http://www.jhmint.com/

Rocklin Coin Shop, CA, 15 min north of Sacramento
http://rocklincoinshop.com/

NEW STORES!
Mom's Silver Shop
https://www.momssilvershop.com
3510 Auburn Blvd., #12
Sacramento, CA 95821
916 481-5656
(Mom will ship in lots of more or less than 100 ounces of silver, and overseas, and take credit cards or pay pal.) 

Oakland Silver and Gold
http://www.oaklandsilverandgold.com/
3929 Piedmont Ave.,
Oakland, California 94611
osg2010@gmail.com


Sincerely,

Jason Hommel

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